Observer Money – Page 11

25 Feb

Trigon agrees to compensate miners

info_e12wt4csObserver Money

Allexer Namundjembo The Mine Workers Union (MUN) has reached an agreement with the majority shareholders of the Kombat Mine, Trigon Metals concerning the retrenchment of 533 employees. The general secretary of the MUN, George Ampweya, confirmed that the matter that has been brewing since last year has been resolved. “The agreement outlines key terms, with an emphasis on supporting employees through equitable compensation. Every retrenched employee will receive one month of notice pay, along with severance pay equivalent to one week's salary for each year of service. Employees will further be paid for any confirmed accrued leave days up to…

25 Feb

More oil discovered in Namibia’s Orange Basin

info_e12wt4csEnergy, Observer Money

Niël Terblanché Custos Energy (Pty) Ltd. has reported a successful second exploration and appraisal campaign in the Orange Basin, specifically in blocks 2813A and 2814B on Tuesday These blocks, governed by Petroleum Exploration License 83 (PEL 83), are operated by a subsidiary of Galp Energia, SGPS, S.A., with Custos and the National Petroleum Corporation of Namibia (NAMCOR) each holding a 10% working interest. The chief executive officer of Custos Energy, Knowledge Katti, announced that the PEL 83 Joint Venture partners have successfully drilled, cored, and logged the Mopane-3X well, which commenced on 2 January 2025. Located 18 kilometers from the…

25 Feb

GIPF issues warning against doing business with Myrtle Growth Capital

info_e12wt4csFeatured, Observer Money

Niël Terblanché The Government Institutions Pension Fund (GIPF) has issued an urgent public cautionary notice regarding an ongoing legal battle against Myrtle Growth Capital (Pty) Ltd. The GIPF, warning that the company has no authority to sell or dispose of shares held on behalf of the Namibia Mid Cap Fund (NMCF). According to GIPF’s marketing and stakeholders engagement general manager, Edwin Tjiramba, the litigation currently before the High Court of Namibia seeks to prevent Myrtle Growth Capital from unlawfully handling shares in various unlisted investments. “Myrtle Growth Capital is the former fund manager of the NMCF, but was deregistered as…

25 Feb

BoN explores digital currencies for financial inclusion and payments

info_e12wt4csObserver Money

Allexer Namundjembo The Bank of Namibia (BoN) is exploring the potential of central bank digital currencies (CBDCs) to improve financial inclusion and streamline cross-border payments. Kazembire Zemburuka, director of strategic communications and international relations, said the central bank is in the ‘preparation phase’ of evaluating a domestic CBDC. According to him, the BoN is examining the desirability of CBDCs for the retail and wholesale sectors, as well as their potential for cross-border payments. “The bank’s exploration is guided by the IMF's 5P Methodology and involves extensive research and staff training,” Zemburuka said. He added that a recent feasibility study, conducted…

23 Feb

No progress for small agro-processors despite trade deals

info_e12wt4csObserver Money

Hertta-Maria Amutenja Despite preferential trade agreements, Namibian micro, small, and medium enterprises (MSMEs) in agro-processing continue to struggle with barriers that limit their market access and growth. The Namibia Investment Promotion and Development Board (NIPDB) has found that small businesses can't fully benefit from these trade agreements because of problems with infrastructure, strict rules for following them, and a lack of money. Titus Shivute, marketing and corporate communication manager of the NIPDB highlighted the opportunities available under agreements such as the Southern African Development Community (SADC) Protocol on Trade, the Economic Partnership Agreement (EPA) with the European Union, and the…

20 Feb

Russia eyes Namibia’s nuclear potential

info_e12wt4csObserver Money

CHAMWE KAIRA The Russian Ambassador to Namibia, Dmitry Lobach, said there are talks to build a 100 MW modular nuclear power station in Namibia and to apply Russian nuclear technology in medicine and agriculture. The Russian diplomat said Russian investors have been working in Namibia and cited the geological surveying for uranium in the Omaheke Region. “This venture by Rosatom, the world-leading Russian State Atomic Corporation, is to establish cutting-edge technology with a cost of US$500 million,” he said. Rosatom has already invested US$50 million in the Omaheke Region. “It is going to extract 3000 tonnes of uranium per year…

20 Feb

De Beers’ carrying value reduced by US$2,9 billion

info_e12wt4csObserver Money

CHAMWE KAIRA It is looking likely that joint diamond ventures, including Debmarine Namibia, Namdeb land operations, and the Namibia Diamond Trading Company, all 50/50 joint ventures with the De Beers Group, will have a new partner in the near future. Anglo American, which owns De Beers, has continued its quest to sell the diamond giant. “The work to separate De Beers is well under way, with action taken to strengthen cash flow in the near term and position De Beers for long-term success and value realisation. Given prevailing diamond market conditions, we have reduced our carrying value of De Beers…

20 Feb

Positive outlook for car industry

info_e12wt4csObserver Money

CHAMWE KAIRA The Bank of Namibia’s decision to lower the repo rate from 7% to 6.75% in February will have a notable impact on credit conditions, vehicle financing, and overall car sales in the coming months. While lower borrowing costs typically encourage spending, broader economic pressures could temper the full effect of this rate cut, a report has noted. Simonis Storm noted that with interest rates easing, borrowing costs will fall, making credit more accessible to both businesses and households. However, the impact will vary across different sectors, it noted. The analysis noted that businesses may take advantage of cheaper…

20 Feb

Lüderitz wind farm gets N$2.5 billion investment

info_e12wt4csObserver Money

InnoVent is building a 11 turbine wind farm on the Atlantic coast as part of an ambitious national policy to enhance energy independence and decarbonization. InnoVent has developed and built the country’s first three solar power plants (Omburu, Osona, Aussenkehr, each with 5 MW) and the first wind farm (Ombepo, 6 MW). These infrastructures, with a total capacity of 21 MW, were commissioned between 2015 and 2017. In 2019, InnoVent acquired a fourth solar power plant of 5 MWc in the Omusati region, thus increasing its capacity and availability. Currently, InnoVent operates 26 MW in Namibia, producing 76,500 MWh in…

20 Feb

Did a Tax Dispute Hold Up the De Beers-Botswana Deal?

info_e12wt4csObserver Money

De Beers and the Botswana government have concluded their negotiations over a new sales agreement for rough diamonds after more than five years of discussions. They haven’t signed yet: Bogolo Kenewendo, minister of minerals and energy, said she hoped this would happen later this month, a pronouncement De Beers CEO Al Cook met with a nod at a press briefing. All that remains are the ‘largely formulaic’ process of issuing the mining licenses, Cook told the audience. The new government, under President Duma Boko’s Umbrella for Democratic Change (UDC) coalition, has touted the fact that it managed to seal the…